Gross profit margin on total assets (TTM)
factor.formula
Gross profit margin on total assets (TTM):
Average total assets:
in:
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Refers to the total operating revenue in the past 12 months. Using rolling 12-month data can more accurately reflect the company's latest operating conditions and avoid seasonal impacts.
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Refers to the total operating costs for the past twelve months, relative to operating revenue (TTM).
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Calculating the average of total assets at the beginning of the period and total assets at the end of the period can more accurately reflect the average size of the company's assets during the reporting period. This indicator avoids the deviation that may be caused by using the asset size at a single point in time.
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Refers to the total assets at the beginning of the reporting period. For example, the beginning total assets of an annual report are the ending total assets of the previous year.
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Refers to total assets at the end of the reporting period.
factor.explanation
Total Assets Margin (TTM) is a profitability indicator that measures how efficiently a company has used its total assets to generate gross profit over the past 12 months. A higher total assets margin generally indicates that a company is able to effectively use its assets to generate profits, which is important for assessing a company's long-term profitability and operating efficiency. This indicator can be compared across industries, but industry characteristics should be considered. For example, industries with high asset turnover may have lower gross margins, and vice versa. Investors can use it in conjunction with other profitability indicators (such as net profit margin, return on equity) to more fully assess a company's financial health.